FirstFT: Joe Biden making ready to dam Nippon Metal’s acquisition of US Metal

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The tales that matter on cash and politics within the race for the White Home

Good morning. Immediately we’re overlaying:

• India and Russia’s secret commerce channel

• How China-related safety issues have reworked US financial coverage

• An interview with Sony’s CEO

However first, President Joe Biden will block Nippon Metal’s acquisition of US Metal after concluding that the $14.9bn transaction posed a nationwide safety danger that might not be mitigated by the US and Japanese teams.

A number of individuals conversant in the matter mentioned the White Home would forestall the acquisition of the Pittsburgh-based group on nationwide safety grounds.

Biden’s choice, which is predicted within the coming days, comes as Kamala Harris, the Democratic presidential nominee, steps up her campaigning for blue-collar votes in Pennsylvania, a swing state that might resolve November’s US election.

Talking in Pennsylvania on Monday, Harris mentioned the long-lasting US steelmaker ought to stay “American owned and American operated”, mirroring the stance that Biden took after Nippon unveiled the deal final yr.

However many international coverage consultants — and a few administration officers in non-public — have ridiculed the notion that Nippon’s proposed acquisition is a safety danger. Japan is a very powerful American ally within the Indo-Pacific and has been working very carefully with Washington on a variety of efforts to counter China.

Right here’s what else I’m maintaining tabs on as we speak:

• Financial knowledge: South Korea publishes revised second-quarter progress figures and Singapore studies July retail gross sales. Thailand, Taiwan and the Philippines report August inflation knowledge.

• Financial coverage: Malaysia’s central financial institution broadcasts its rate of interest choice.

• China-Africa summit: Leaders and officers from 50 African international locations are gathered in Beijing, the place Xi Jinping is predicted to induce them to soak up extra Chinese language items in return for pledges of loans and funding. (Reuters)

5 extra prime tales

1. Unique: Russia has been secretly buying delicate items in India and explored constructing services within the nation to safe parts for its struggle effort, in keeping with Russian state correspondence seen by the FT. The leaked recordsdata define Moscow’s plan to make use of “significant reserves” of rupees amassed from oil gross sales to India on securing essential electronics by way of channels hidden from western governments.

2. Funding banks are reducing their progress forecasts for China, believing Beijing dangers falling in need of its official goal of about 5 per cent. China’s GDP goal has attracted shut scrutiny within the wake of the pandemic amid weak investor confidence and a struggling property sector.

3. Washington’s new envoy to Taiwan has praised Taipei’s defence reforms, in a press release of reassurance because the prospect of one other Donald Trump presidency raises issues over the US’s dedication to its allies and companions. Raymond Greene additionally mentioned Washington would “not rule out” joint weapons growth with Taiwan.

4. Volvo Vehicles has deserted its formidable goal to promote solely electrical vehicles by 2030 amid a worldwide slowdown in progress for battery-powered automobiles. The Geely-owned Swedish group blamed altering market situations and shopper worries over the dearth of charging infrastructure for its revised goal.

5. Prime Minister Justin Trudeau’s essential parliamentary alliance accomplice has torn up a deal to assist his Liberal authorities, throwing Canada into new political uncertainty and elevating the prospect of a snap election.

Our new-look e-newsletter Newswrap rounds up the most important economics and enterprise tales thrice per week, additionally together with a daily excellent news story. Join right here.

The Massive Learn

The rising intersection of financial coverage and nationwide safety within the US has many roots, however the greatest issue has been China. Fears about espionage and dual-use applied sciences have fused with financial nationalism to create an American mindset unrecognisable from the nation’s post-cold struggle free market perspective — with dramatic implications for the way forward for the worldwide economic system. 

We’re additionally studying . . . 

Chart of the day

Goldman Sachs has slashed its 2025 copper value forecast by a 3rd, clouding the revenue outlook for main miners of the metallic. The Wall Road financial institution warned this week that an anticipated rally wouldn’t materialise because the Chinese language property rout depresses demand for commodities.

Take a break from the information

Scientists are learning — and recreating — molecules that not exist, in a area referred to as “molecular de-extinction”, writes Anjana Ahuja. No, this isn’t about bringing again the dodo or the woolly mammoth, however fairly making an attempt to see whether or not their genomes cover long-lost molecules that provide options to our fashionable issues.

Further contributions from Tee Zhuo and Harvey Nriapia